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October 22, 2013

6 Pitfalls That Could Destroy Our Budget

After the disaster left by Santi
storm I just realized that the major expenses we can experience is during the
emergency like aftermath of storm, earthquake and other natural disasters. We
need to make sure that aside from saving money for future use we also need to
save just for the sake of emergency purposes like the event of hospitalization
and during the disasters. After Santi storm I do not have any choice but to use
up my entire budget and even use my other savings for food, water, generator,
gas, and rechargeable lights.

1.Credit
cards. These plastic is understandably tempting but we need to know that the
money we use out of credit card is not our own money. Do not bring this plastic
during malling or window shopping or you will end up buying things that you don’t
actually need. But some prefer to keep one for emergency situations but it is
best not to have one and just use your emergency funds or savings.

2.Impatience
in planning or savings. Oftentimes problem arise when people set financial
plans or goals but lose patience in completing the savings programs. For
example, let’s say an individual set aside money for a new 3d LED TV every
payday, then pass by on appliance store and have urge to buy the TV he love
using credit card that has a charge of high interest rates.

3.Lack
of adjustments. A budget is created using a set of expenses and income figures
that current at that time. As these figure changes, it is important that the
budget is adjusted for these changes.

4.Holidays.
Unfortunately we cannot prevent holidays and this can spoil our budget. It is
important that we plan and adjust the budget for special occasion which need
substantial amount of money for presents, food, dress, decoration and etc.

5.Vacations.
Vacation can also spoil our budget our
budget especially some necessity things like food, water and other expenses
that are obviously higher in other tourist destination places. If you can bring
foods like noodles, water and crackers do so for you to be able to manage your
budget.

6.Emergency
situation which already discuss in the introduction of this post.